EXL Service is actively seeking individuals with advanced skills in data, AI, and generative AI as part of its strategic realignment to meet the escalating demand for generative artificial intelligence solutions. Amid this shift, EXL Service Holdings is restructuring its workforce, trimming 800 jobs, equivalent to less than 2% of its overall employee base. Sources familiar with the situation report that 400 positions have been eliminated outright, while the remaining 400 employees have been offered alternative employment opportunities. The New York-headquartered firm, boasting a global workforce of approximately 55,000, primarily targeted junior staff in data analytics and digital operations roles across its U.S. and India offices for these adjustments.
As part of its pivot, EXL Service is actively recruiting individuals equipped with advanced proficiencies in data, AI, and generative-AI, according to a company spokesperson. In a recent announcement, EXL Service elevated Chief Executive Rohit Kapoor to the position of board chair and expanded the roles of two senior executives—Vikas Bhalla, responsible for insurance, and Vivek Jetley, overseeing analytics—to encompass the adoption of data and AI-driven solutions.
The organization aims to effectively align the talent pool and skill sets within it with the evolving needs of its clientele. This entails a recalibration of existing roles coupled with the recruitment of top-tier talent with expertise in data and AI technologies. This strategic manoeuvre mirrors a broader trend across the tech industry, where companies are reallocating resources to prioritize AI-driven initiatives, driven by growing business interest in AI solutions like ChatGPT.
What Next for EXL Service?
Amazon made headlines recently by streamlining its cloud-computing business with significant workforce reductions, citing a strategic shift towards AI-related endeavours among its reasons. Similarly, professional services and consulting firms, which experienced a surge in demand during the COVID-19 pandemic, have witnessed a contraction in business activity, resulting in widespread layoffs.
For those affected by recent layoffs in the tech sector, the job market is proving challenging, with positions requiring AI skills in particularly high demand. EXL, a Nasdaq-listed company offering data analytics and digital solutions services, has seen its workforce swell by 22,000 since the close of 2020. However, escalating costs and a slowdown in deal flow have presented challenges, especially in the analytics segment. Reduced spending from clients in sectors such as insurance and banking, notably in marketing analytics, has offset revenue growth in this area.
Despite these challenges, the demand for IT services providers like EXL remains robust, especially in assisting businesses in preparing their data for integration with AI models—an intricate and time-consuming process. Analysts echo the sentiment that these companies will continue to play a significant role in facilitating the adoption of AI models by large corporations. They emphasize that firms like EXL, with their deep expertise in data management and process optimization, are expected to persist in this role. Moreover, analysts highlight that new contracts increasingly focus on AI-driven cost-saving initiatives, underscoring the enduring importance of such firms in the evolving digital landscape.
